"In Canada, Toronto's strong ecosystem helped it draw 6 percent of the globe vote while on the western coast, Vancouver was named 1 percent of the respondends as a potential leading hub over the next four years. The tech sector in Canada continues to demonstrate robust growth led by advances in AI."

"Canada's tech sector continues to surge, and the country remains a target destination for thriving global companies and entrepreneurs seeking access to a diverse, highly skilled and milticultural workforce. Smart, early-stage investment in AI and fintech have helped Canada become a research leader in machine learning and deep learning, setting stage for Industry 4.0."

While Toronto is not #1 in the research it did beat out cities like Hong Kong and many US cities like Los Angeles , Seattle and Austin, Texas.

When it came to Canada , report mentioned that investments in AI and fintech helped Canada tech sector to thrive. As well as university research and infrastructure is there to support the ecosystem. Local companies like Shopify and Blackberry cemented Canada's status as leader in R&D and innovation.

Report wrapped up with few notes to highlight a potential downside to sector's growth.

First thing highlighted was Canada politeness, shyness and under ambition when it came to money. KPMG said that instead of growing their startups into billion dollar corporations, a lot of founders decide to exit via acquisition. The average exit is only $8m. With almost 2 million Canadian companies in existence, the ones that go the distance and achieve true scale can be counted on your fingers.

The second thing highlighted was NAFTA renegotiations, cross border regulations and how much Canada stands to lose.